Mr Preston said he was overturning the State Government's planning consent, because the mine would create unacceptable noise and dust problems for the nearby residents of Bulga, and that the benefits of the project did not outweigh its social and environmental impacts.

Rio Tinto and State Planning Minister Brad Hazzard filed a joint appeal against the decision in the Supreme Court, which is yet to decide on the case.

Today, using controversial new mining laws introduced late last year by then Resources Minister Chris Hartcher, Rio Tinto has announced it's resubmitting its mining plans.

We have no other option but to go back with a longer term consent approval.

Chris Salisbury, Managing Director Rio Tinto Coal Australia.

With over 1300 jobs on the line, the company says the expansion is critical for the mine's future.

Managing Director of Rio Tinto Coal Australia, Chris Salisbury says the company had no other option but to act to keep the mine viable.

"Well what we've had to do is, you know the Supreme Court decision will be on a fairly narrow point of scope and we are running out of time to protect the future of the mine," he said.

"Therefore we have no other option but to go back with a longer term consent approval."

Mr Salisbury acknowledges Bulga residents will be concerned by the project, but says the company will do what it can to respond to the issues.

"You know we are going to continue to consult with residents of Bulga and we know that some residents obviously have got some concerns.

"We've attempted to respond to some of those concerns and we'll continue to consult with them through the application process."

Bulga resident John Krey says he is shocked at the move and describes the new State Environmental Planning Policy as the 'Rio SEPP'.

"That SEPP amendment was invented to offset the findings of the Land and Environment Court and we believe that was the pressure from Rio Tinto," he said.

"There's no secret that there were several sessions that Rio Tinto had with the government.

"We believe that that SEPP amendment was brought out to specifically address the points the judge made in his decision to reject the mine."